JB Chemicals surges 31% in eight days; stock nears record high

On April 1, the SC set aside the NGT order directing revocation of environmental clearance and closure of the company's bulk drugs Unit at Panoli, Gujarat

Shares of JB Chemicals & Pharmaceuticals were trading higher for the eight straight day, up 9 per cent to Rs 588 on the BSE on Monday. The stock was trading close to its record high level of Rs 599, hit on February 14, 2020.

In the past eight trading days, the stock has rallied 31 per cent after the Supreme Court on April 1 set aside the Orders of National Green Tribunal (NGT) directing revocation of environmental clearance and closure of the Company's bulk drugs Unit at Panoli, Gujarat. In comparison, the S&P BSE Sensex was up 15 per cent during the same period.

“Thus, Company's said bulk drugs Unit, operating under the name Unique Chemicals, shall continue to function as before. However, the Supreme Court has directed for deposit of compensation of Rs. 10 crore with Gujarat Pollution Control Board (GPCB) for use in preserving the environment,” JB Chemicals had said in a regulatory filing.

In February, the company had received Establishment Inspection Report (EIR) from the United States Food and Drug Administration (USFDA) for its newly set up and commissioned solid oral dosage forms formulations manufacturing facility at Panoli, Gujarat. USFDA issued an EIR to the company when an inspection is satisfactorily "closed"; the company said, adding that the inspection was carried out from June 24 to 28, 2019.

At 09:45 am, JB Chemicals was up 6 per cent at Rs 568 on the BSE, against a marginal 0.02 per cent rise in the S&P BSE Sensex. A combined 92,000 shares have changed hands on the counter on the NSE and BSE so far.